Dividends play an important role for many investors. With interest rates remaining near historic lows and key demographic changes shaping future financial needs, dividends can provide a stable source of cash flow that exceeds the rate on bonds or savings accounts. They can also help investors lock in returns through years of stable payments. While dividends have gained popularity in recent years, there are some dividend-paying companies that are often ignored.
Last year, dividends paid by the world’s listed companies reached a record high of $1.03 trillion, according to the Henderson Global Dividend Index. “The trillion dollar dividend is a huge milestone for equity investors and illustrates that dividends are now a vital component of investors’ returns,” said Henderson CEO Andrew Formica. Let’s take a look at three dividend-payers that investors may want to consider for their portfolios: BP (BP) Dividend yield: 4.6 percent, DuPont (NYSE:DD) Dividend yield: 2.7 percent and Banco Santander (NYSE:SAN) Dividend yield: 8.9 percent.